Info Report Check
Submission incomplete:
1: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
The DOE shall explain how it has validated the suitability of the total investment, in particular, how it has validated that the hydro projects used for cross-checking are similar and comparable to the project activity.

2: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
The DOE shall explain how it has validated the suitability of the benchmark, in particular:
(i) The beta value (2.61) is not based on the parameters that are standard in the market, while it is particularly for a specific group of companies which fall under the presumed profit taxation regime. Please refer to EB62 Annex 5, paragraph 13.
(ii) How the DOE has validated that the gross revenue of the project participant (the company) would operate with a gross revenue below R$ 48 million under the presumed profit taxation regime through the lifetime of the project activity.
(iii) It is not clear how the beta value of each referred US company is derived and what is the vintage of the data used to calculate the beta values.
(iv) How the DOE has validated that the debt/equity ratio (70% / 30%) is the typical finance structure observed in the sector of the country. Please refer to EB 62 Annex 5, paragraph 18.
(v) The income tax rate described in page 123 of the validation report is not consistent with the income tax rate applied in the spreadsheet "7858 Financials.xlsx".